|
Unforgettable Birthdays
Birthdays may seem less important as you grow older. They may not offer the impact of watershed moments, such as getting a driver’s license at 16 and voting at 18. But beginning at age 59, there are several key birthdays that can affect your tax situation, health-care eligibility, and retirement benefits.
59½ — You can start taking penalty-free withdrawals from IRAs and qualified retirement plans, provided certain conditions are met. Ordinary income taxes generally apply to these distributions. (Withdrawals taken prior to age 59½ are subject to a 10% federal income tax penalty.)
62 — You are eligible to start collecting Social Security benefits, although your benefit will be reduced by up to 30%. To receive full benefits, you must wait until “full retirement age,” which ranges from 65 to 67, depending on the year you were born.
65 — You are eligible to enroll in Medicare. Medicare Part A Hospital Insurance benefits are automatic for those eligible for Social Security. Part B Medical Insurance benefits are voluntary and have a monthly premium. To obtain coverage at the earliest possible date, you should generally enroll about two to three months before turning 65.1
70½ — You must start taking minimum distributions from most tax-deferred retirement plans or face a 50% penalty on the amount that should have been withdrawn. Annual required minimum distributions are calculated according to life expectancies determined by the federal government.
1) Medicare & You 2010, U.S. Department of Health and Human Services
The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor.
This material was written and prepared by Emerald.
© 2010 Emerald |
| Harlan Miller and Associates |
print this page| 259 Regency Ridge Drive | • | Dayton, OH | • | 45459 |
| Phone: 937-436-0400 | • | Fax: 937-436-7984 |
| www.harlanmiller.com | • | hmiller@walnutstreet.com |
The following links are provided strictly as a courtesy. When you link to any of these websites, you are leaving this site. Neither WSS or Harlan Miller and Associates - Regency Financial LLC make any representation as to the completeness or accuracy of information provided by these sites. WSS and Harlan Miller and Associates - Regency Financial LLC assume no liability for any direct or indirect technical or system issues or any consequences arising out of your access to, or use of, a third-party site. When you access one of these sites, you are leaving Harlan Miller and Associates - Regency Financial LLC’s website and assume total responsibility and risk for your use of the sites to which you link.
Putnam Investments College Advantage
Harlan V. Miller is a Registered Representative of Walnut Street Securities, Inc. (WSS) Securities offered through WSS, Member FINRA/SIPC. Harlan Miller & Associates and Regency Financial LLC are not subsidiaries or control affiliates of WSS. Securities activities are supervised from a WSS office located at 6200 Rockside Rd., Suite 100, Cleveland OH 44131 (888) 401-2980
L1109075120[exp1210]